News Letter

TOWARDS AMETA THEORY OFACCOUNTING FOR KNOWLEDGE MANAGEMENT: REVIEW THE

REALITIES TO STAGE THE CRITICAL THINKING OF KNOWLEDGE BUSINESS MODEL

SBE, Vol.20, No.1, 2017

ISSN 1818-1228

Qatar University

discussed many challenges that accounting

regulatory questioned to prepare causal

financial statements. According to the general

understanding of this era, the problem of

accounting is already attributed to its theoretical

architecture and ontology. The theoretical

lacks of accounting have perceived significant

attention in the business literatures in terms

of how to report business initiatives properly.

The central premise of this era has addressed

accounting as information management

model with quite narrow recognition rules

and reporting instruments. The old industrial

logic of accounting has been recognized as

problematic and need to be replaced under

the pressure of business change. The core

objective of these literatures was how to

capture the differences of book value and

make it measurable to the users in the financial

statements. For the accounting literature, it was

important to look for the new emergent gap

between accounting and market values. Taken

this fundamentally reporting issue, much of the

discussion dealt with the empirical evidence

of problematic measurement of business

practices. In the early period of the sixties,

the accountant’s community has focused a

great deal of interest to concept of accounting

transaction. The new organizational models due

to automation have created clear challenges to

accounting definition of business transaction.

Firmin and Linn (1968) have investigated how

these models have expanded the accounting

transaction concept. These new models are,

introduction of information systems, changes

in the organizational structure, and repaid

growth in data processing technologies.

Anton (1966) had explained another lack

of accounting model in regard to missing

integration with the planning and control

systems. American Accounting Association

(1966) has recognized the economic events

which are not measured by accounting model

such as price-level changes, employee skills

and intra-entity changes in assets values. The

subsequent accounting literatures have paid

visible attention on reliability of accounting

information in terms of usefulness, accuracy,

quality of format and reasonableness. All these

research directions have initiated information

technology based communication approach to

enhance reliability of accounting information.

In the early of the seventies, the discussions

in the accounting literatures have been

allocated to how to shift accounting interest

from measuring transactions’ data to report

business value (Previts and Merino, 1999).

Later, the awareness has been increased to start

recognizing that the shift toward knowledge

economy has altered the requirements of

management, which in consequence rooted

the wave of accounting lacks. The topic of

accounting relevance has been of interest

to both accounting and business specialists.

Accounting research has been plagued by a

variety of the evaluation problems that can

lead one to question the extent of reliability of

accounting numbers. Relevance of accounting

information as a new area of critic has

attracted the attention of business literature

and thinkers (Burns and Stalker, 1961). The

serious problem of financial statements is

laid in its theoretical logic and structure. This

matter has received much attention in the early

literature, often in the form of discussions

around validity of the accounting measurement

rules. Accounting rules are key cause beyond

accounting numbers’ failure. As set of these

rules were set up to evaluate static business

transactions. These rules take out change from

being recognized in the financial statements.

These practices and treatments detract from

the quality of financial information provided in

the balance sheet. This theoretical logic of the

accounting has been established five hundred

years ago. This logic has been set up tomatch the

requirements of industrial business transaction

managed by machine technology (Lev, 2001).